Commissioner of Inland Revenue v Avenger Stell Limited (in liquidation)

IN THE COURT OF APPEAL OF NEW ZEALAND

I TE KŌTI PĪRA O AOTEAROA

CA304/2018
[2019] NZCA 5

BETWEEN	THE COMMISSIONER OF INLAND REVENUE Appellant
AND	AVENGER STEEL LIMITED (IN LIQUIDATION) Respondent

Court:	Brown, Clifford and Gilbert JJ
Counsel:	M Deligiannis for Appellant W Somerville for Respondent
Judgment: (On the papers)	12 February 2019 at 11.15 am

JUDGMENT OF THE COURT

The appeal is allowed.

____________________________________________________________________

REASONS OF THE COURT

(Given by Brown J)

On 10 May 2018 Associate Judge Matthews delivered a judgment dismissing the Commissioner’s application for costs in the liquidation proceedings against the respondent on the basis he was bound by the reasoning of this Court in Joint Action Funding Ltd v Eichelbaum[1] and McGuire v Secretary for Justice.[2] Consequent upon the Supreme Court’s judgment in allowing the appeal in McGuire v Secretary for Justice[3] the parties request that the Commissioner’s appeal be allowed. No order for costs are sought in this Court and the parties agree that the matter does not need to be referred back to the High Court.
[1]Joint Action Funding Ltd v Eichelbaum [2017] NZCA 249, [2018] 2 NZLR 70.
[2]McGuire v Secretary for Justice [2018] NZCA 37, [2018] 3 NZLR 71.
[3]McGuire v Secretary for Justice [2018] NZSC 116.
The parties consenting, the Commissioner’s appeal is allowed.

Solicitors:
Crown Law Office, Wellington

CaseChat Overview and Summary

The Court of Appeal of New Zealand was asked to consider an appeal by the Commissioner of Inland Revenue against a decision made by Associate Judge Matthews. The appeal concerned the respondent, Avenger Steel Limited, which was in liquidation. The dispute centred on the Commissioner's application for costs in the liquidation proceedings, which had previously been dismissed. The appeal was based on the recent Supreme Court decision in McGuire v Secretary for Justice, which had overturned the Court of Appeal's earlier decision in the same case.

The central legal issue before the Court of Appeal was whether the Commissioner, as the appellant, was bound by the Court of Appeal's prior reasoning in Joint Action Funding Ltd v Eichelbaum and McGuire v Secretary for Justice. The parties agreed that the recent Supreme Court decision in McGuire v Secretary for Justice necessitated a reconsideration of the earlier Court of Appeal decision. The Commissioner argued that the Supreme Court's decision should lead to a reversal of the earlier judgment, which had dismissed the application for costs.

The Court of Appeal allowed the Commissioner's appeal based on the parties' consent and the recent Supreme Court decision in McGuire v Secretary for Justice. The Court noted that the earlier decision by Associate Judge Matthews was indeed bound by the Court of Appeal's reasoning in the cited cases, but that this reasoning had been overturned by the Supreme Court. Consequently, the Court of Appeal allowed the appeal and the matter was concluded without the need for further reference to the High Court. The parties did not seek an order for costs in this Court.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established